1. 1-1 Gathering Information and Measuring Market Demand by

2. 1-2 Kotler on Marketing Marketing is becoming a battle based more on information than on sales power.

3. Components of MIS (Marketing Information System) Major responsibility for identifying significant market place changes falls to the company’s marketers. Marketers also have extensive information about how consumption patterns. – Swiss consume the most chocolate – Greeks eat the most cheese – Per capita consumption of ice cream in Pakistan is 0.5litres. Turkey had this 15years ago and now their consumption is 2.5litres.

4. Marketing Information System marketing information system (MIS) A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. It is developed from – Internal Company Records – Marketing Intelligence Activities – Marketing Research

5. 1-5 1. INTERNAL RECORD SYSTEMS The Order-to-Payment Cycle Sales Information Systems Databases, Data Warehouses And Data-Mining (customer data base)

6. 1-6 Can you name a company that uses targeted mailings to promote new products, or regional offerings?

7. 1-7 2. THE MARKETING INTELLIGENCE SYSTEM A Marketing Intelligence System is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment. Internal Records systems supplies result data, but the marketing intelligence system supplies happenings data.

8. 1-8 A company can collect Market Intelligence by the following – Trade publications, talking to customers, suppliers, and distributors – Training and motivationg the sales force to spot and report new developments. – Purchasing competitors products – Advisory Panels – Mystery shoppers. – Government data sources – Purchasing information from outside suppliers. – Online customer feed back systems 2. THE MARKETING INTELLIGENCE SYSTEM

9. 1-9 What are some of the potential hazards a company might face by relying too heavily on distributors, retailers, or other intermediaries for market intelligence?

10. 1-10 3. MARKETING RESEARCH SYSTEM Marketing Research – The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. – Globally, it’s a $16.5 billion industry !

11. 1-11 MARKETING RESEARCH SYSTEM Suppliers of Marketing Research – Engaging students or professors to design and carry out projects – Using the Internet – Checking out rivals – Syndicated-service research firms (AC Nielson) – Custom marketing research firms – Specialty-line marketing research firms

12. The Marketing Research Process Defining the problem and researchobjectives Defining the problem and researchobjectivesDeveloping the research planDeveloping plan Collect the information information Analyze the information information Present the findings findings

13. SCENARIO PIA is looking for new ways to serve its passengers and is reviewing many ideas for its first class passengers. Ideas are – To supply an internet connection with limited access to web pages and email messaging – To offer 24 channels of satellite cable TV – To offer a 50-CD audio system that lets each passenger create a customized play list of music and movies to enjoy during the flight

14. 1-14 MARKETING RESEARCH SYSTEM Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives – Not too narrow / not too broad – Research problem “Will offering an in-flight internet service create enough incremental preference and profit for PIA to justify its cost against other possible investments?

15. Step 1 contd – Research Objectives What types of first class passengers would respond most to using an in flight internet service. How many are likely to use this service How many extra passengers will choose PIA How much long term goodwill will this service add MARKETING RESEARCH SYSTEM

16. Exploratory Research Descriptive Research Causal Research Test cause- and-effect relationships. Tests hypotheses about cause- and-effect relationships. Test cause- and-effect relationships. Tests hypotheses about cause- and-effect relationships. Sheds light on problem - suggest solutions or new ideas. Sheds light on problem - suggest solutions or new ideas. Ascertain magnitudes. MARKETING RESEARCH SYSTEM

17. 1-17 Step 2: Develop the Research Plan – Data Sources (Primary and Secondary) – Research Approaches Observational Research (Researchers might meander around first class lounges or fly on competitors planes to observe in flight service MARKETING RESEARCH SYSTEM

18. – Research Approaches contd Focus Group Research Surveys Behavioral Data (purchasing behavior) (PIA might analyze the customer data base of first class passengers) Experimental Research (to test) – Research Instruments Questionnaires Qualitative Measures (shadowing, interviewing) Mechanical Devices (galvanometers, eye camera, TV meter) MARKETING RESEARCH SYSTEM

19. – Sampling Plan Sampling unit : Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen MARKETING RESEARCH SYSTEM

20. 1-20 A.Probability Sample Simple random sample Every member of the population has an equal chance of selection Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group Cluster (area) sample The population is divided into mutually exclusive groups (such as city blocks), and the researcher draws a sample of the groups to interview Table 5-3: Probability and Nonprobability Samples Continued on next slide...

21. 1-21 B.Nonprobability Sample Convenience sample The researcher selects the most accessible population members Judgment sample The researcher selects population members who are good prospects for accurate information Quota sample The researcher finds and interviews a prescribed number of people in each of several categories 5-3: Probability and Nonprobability Samples (Continued)

22. 1-22 Step 3: Collect the Information – Most Expensive – Most prone to errors Step 4: Analyze the Information MARKETING RESEARCH SYSTEM

23. 1-23 Step 5: Present the Findings – The chief reasons for using in-flight Internet service are to pass the time surfing and to send and receive messages from colleagues and family – About 5 will use @ Rs. 1500, 10 will use @ Rs. 900 – Will help to strengthen the brand image, gain some passengers, and customer good will. Step 6: Make the Decision MARKETING RESEARCH SYSTEM

24. 1-24 FORECASTING AND DEMAND MEASUREMENT Survey of Buyers’ Intentions Composite of Sales Force Opinions Expert Opinion Past Sales Analysis Market Test Method